Midday Report 06/19

After dipping in overnight trading, corn futures resumed their early-week rally Wednesday morning. General supply tightness is probably offering support despite news of diminished ethanol industry production last week and forecasts for favorable growing weather during the days and weeks just ahead. However, persistent problems stemming from the late start to plantings and excessive moisture seem likely to limit the harvest and render the crop vulnerable to summer heat. In fact, a Memphis-based firm lowered its estimates of U.S. acreage this morning, which probably supported prices as well. July corn climbed 4.75 cents to $6.78/bushel Wednesday morning, while December surged 7.25 cents to $5.5775.